Note 41 - Significant transactions with related companies

In this context ‘related parties’ means subsidiaries, associated companies, joint ventures and companies held for sale over which the Bank exercises substantial influence, as well as SpareBank 1 SMN Pensjonskasse (pension fund) and companies owned by the Bank’s personal related parties. The Bank’s outstanding accounts with employees and members of the Board of Directors are shown in note 8 on loans and advances to customers and note 22 on personnel expenses and emoluments to senior employees and elected officers. The opening balance may differ from the previous year's closing balance as the opening balance includes companies that during the fiscal year have been classified as related partied of the Bank. 

  Subsidiaries Other related companies
Loans (NOK million) 31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014
Outstanding loans as at 1 Jan*) 3,265 2,738 1,662 1,875
Loans issued in the period 782 271 3,554 495
Repayments 0 0 197 400
Outstanding loans as at 31 Dec 4,047 3,009 5,019 1,971
         
Interest rate income 86 84 144 36
         
Bonds and subordinated loans as at 31 Dec 89 89 1,718 1,526
         
Deposits (NOK million)        
Deposits as at 1 Jan 1,235 1,838 2,476 969
Contribution received during the period 24,819 21,892 94,570 22,753
Withdrawals 24,975 22,497 95,004 21,206
Deposits as at 31 Dec 1,079 1,232 2,042 2,517
         
Interest rate expenses 24 32 11 8
         
Securities trading - - 468 -491
Commission income SpareBank 1 Boligkreditt - - 326 417
Commission income SpareBank 1 Næringskreditt - - 8 10
Issued guarantees and amount guaranteed 137 137 35 75
 
*)SpareBank 1 Markets have been consolidated in the Group accounts from second quarter 2015

Loans and deposits

All loans and deposits for related parties are booked in the Parent Bank.

Securities trading

SpareBank 1 SMN's subsidiaries Sparebank 1 Markets and Sparebank 1 Finans Midt-Norge carry out a large number of transactions with the Bank's related companies. Transactions are executed on a ongoing basis in the fixed income and forex area, payments transmission, bond trading etc. These transactions are part of ordinary bank operations and all agreements are contracted on market terms. Numbers above includes net investmens in derivatives, bond transactions and deposits.

Other transactions

SpareBank 1 SMN has signed supply agreements with several related companies in order to safeguard ordinary banking operations and further development of the SpareBank 1 alliance. This includes development of data-technical solutions for alliance collaboration, commission from insurance and savings and investment products, administrative services, leasing of premises etc. The agreements are considered to be on market terms. In addition the Bank participates in increases of capital in related companies; see note 39 on investment in owner interests. The Group has in 2015 paid NOK 26.2m in premium to SpareBank 1 SMN Pensjonskasse.

Financial results

Annual report and notes

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